Braze, Inc. (BRZE): history, ownership, mission, how it works & makes money

A Brief History of Braze, Inc. (BRZE)

Formation and Early Years

Braze, Inc. was founded in 2011 by Bill Lively and his team, focusing on mobile engagement and customer experience solutions. The company's headquarters is located in New York City. In its early years, Braze distinguished itself by offering innovative customer engagement tools that utilized real-time data to enhance user experiences across various mobile platforms.

Funding and Growth

By 2018, Braze had raised a total of $70 million in funding through various rounds, including investments from prominent venture capital firms such as Battery Ventures, Iconiq Capital, and Meritech Capital Partners. The Series E funding round completed in 2018 raised $30 million, showcasing strong investor confidence in the company's vision and business model.

Acquisitions and Strategic Moves

In October 2020, Braze acquired the company Appboy, which further solidified its position in the customer engagement market. The strategic acquisition aimed to enhance Braze's capabilities in delivering personalized customer experiences across multiple channels.

Financial Performance

As of 2022, Braze reported an annual revenue run rate of approximately $150 million. The company experienced significant growth, with a compound annual growth rate (CAGR) exceeding 30% since its inception. The client base expanded to more than 1,000 brands, including notable companies like Domino's, Pizza Hut, and Urban Outfitters.

Public Offering

Braze went public on November 17, 2021, trading on the Nasdaq under the ticker symbol BRZE. The IPO was well-received, with shares initially priced at $43, giving the company a market capitalization of approximately $4 billion. The closing price on the first day of trading was $50.61, reflecting an increase of 18%.

Recent Financial Metrics

For the fiscal year ending January 31, 2023, Braze reported the following financial metrics:

Market Position and Future Outlook

As of 2023, Braze holds a significant share in the mobile customer engagement market, estimated to be valued at over $7 billion. The company's innovative solutions continue to set it apart from competitors like Airship and Salesforce Marketing Cloud. Analysts forecast a strong growth trajectory for Braze, with expected revenues projected to reach $300 million by the end of 2024.

Conclusion of Recent Developments

Braze's emphasis on real-time engagement and personalized customer experiences aligns with current market trends. The company remains poised for robust growth, with strategic initiatives and a strong financial foundation driving its future endeavors.

A Who Owns Braze, Inc. (BRZE)

Corporate Structure

Braze, Inc. (BRZE) is a public company listed on the NASDAQ. As of October 2023, it operates with a dual-class share structure.

Major Shareholders

The ownership of Braze is distributed among various institutional investors, individual shareholders, and company founders. The notable stakeholders include:

Market Capitalization

As of mid-October 2023, Braze, Inc. has a market capitalization of approximately $1.67 billion.

Recent Financial Performance

In the latest quarter, Braze reported revenue of $100.2 million, reflecting a year-over-year growth of 30%.

The company’s adjusted EBITDA for the same quarter was $10 million, with a net loss of $5 million.

Stock Performance

Braze, Inc.'s stock was trading around $36.50 per share as of October 15, 2023. The stock has seen fluctuations within a 52-week range of $24.00 to $45.00.

Future Ownership Trends

Analysts predict increasing institutional ownership in the coming quarters as the company continues to scale its operations globally.

Voting Rights

Due to the dual-class structure, Class A shares held by the founders carry ten votes per share, while Class B shares held by public investors carry one vote per share.

Insider Transactions

In the past six months, insider trading activities included:

Conclusion on Ownership Composition

The ownership of Braze, Inc. is characterized by a mix of institutional backing and founding ownership, reflecting a solid base for future growth.

Braze, Inc. (BRZE) Mission Statement

Corporate Overview

Braze, Inc. is a customer engagement platform that empowers brands to deliver personalized and targeted messaging to enhance customer relationships. The company emphasizes creating meaningful connections through data-driven insights and innovative technology.

Mission Statement

Braze’s mission is to “Deliver personalized customer experiences that drive engagement and loyalty.” The company focuses on enabling brands to understand their customers better and cater to their needs effectively.

Core Values

• Customer Centricity
• Innovation
• Inclusivity
• Collaboration

Financial Performance

For the fiscal year ended January 31, 2023, Braze reported:

Market Position

As of Q3 2023, Braze holds a significant position in the customer engagement market. The estimated market size is projected at $10 billion, with Braze capturing approximately 2% of the market share.

Customer Base

Braze serves over 1,300 global brands, including:

• Coca-Cola
• Domino's
• Urban Outfitters
• Postmates

Growth Strategy

Braze employs a robust growth strategy focusing on:

• Expansion of product offerings
• Enhancing customer experience through AI-driven personalization
• Strategic partnerships with other tech solutions

Recent Developments

In 2023, Braze introduced several new features enhancing user experience, including:

• AI-powered recommendations
• Advanced segmentation tools
• Improved analytics dashboard

Employee Metrics

Braze’s workforce as of Q1 2023 consists of approximately 800 employees across various departments, with a commitment to diversity:

How Braze, Inc. (BRZE) Works

Overview of Braze, Inc.

Braze, Inc., a leading customer engagement platform, specializes in providing solutions for personalized communication between brands and their customers. The company primarily enables brands to send targeted messages through a variety of channels, including push notifications, email, in-app messaging, and SMS.

Business Model

Braze operates on a subscription-based model, offering various tiers of service to accommodate different business needs. The pricing structure is influenced by factors such as the number of monthly active users (MAUs) and the level of service required.

Key Features and Services

The platform offers several powerful features designed to enhance customer engagement.

• Multi-Channel Messaging: Braze supports messaging through push notifications, email, in-app messaging, and SMS.
• Segmentation: Allows brands to create targeted audience segments based on user behavior and demographics.
• Real-Time Data: The platform provides real-time analytics to track engagement and campaign performance.
• Automation: Users can automate marketing campaigns based on triggers and user actions.
• Integration: Braze integrates with various popular applications and platforms, including Salesforce, Segment, and Shopify.

Market Performance

As of October 2023, Braze has shown substantial growth in its financial performance.

Customer Base

Braze serves a diverse range of industries, catering to companies from retail to media and beyond.

• Notable Customers: Brands like Domino's, HBO Max, and Sephora utilize Braze's services.
• Global Reach: Braze operates in over 40 countries, providing services to thousands of active brands.

Recent Developments

In the latest quarter, Braze reported key developments affecting its strategic initiatives.

Financial Health

Braze's financial metrics indicate a robust overall health.

• Market Capitalization: Approximately $2 billion as of October 2023.
• Net Income (FY 2023): -$30 million.
• Total Assets: $250 million.
• Cash Flow from Operations: $10 million.

How Braze, Inc. (BRZE) Makes Money

Revenue Model

Braze, Inc. primarily generates revenue through a subscription-based model, offering various tiers of service. In the fiscal year 2023, the company's revenue was reported at $172 million, demonstrating significant growth from the previous year.

Subscription Tiers

• Basic Tier: $1,000 per month
• Professional Tier: $5,000 per month
• Enterprise Tier: $20,000+ per month

Customer Base

The company reported having over 1,000 customers in 2023, including notable clients such as Domino's Pizza, British Airways, and McDonald's. The average revenue per user (ARPU) was approximately $15,000 annually.

Geographic Revenue Distribution

Partnerships and Integrations

Braze has established partnerships with various technology platforms, which enhance its service offering and drive additional revenue. Key partnerships include:

• Salesforce
• Segment
• Shopify

Gross Margin and Profitability

The company achieved a gross margin of approximately 70% in fiscal 2023. Operating losses were recorded at $50 million, although this figure represents a decrease from prior years.

Investment and Funding

Braze has received significant investment, totaling around $100 million over multiple funding rounds as of 2023. The latest Series F round in 2021 raised $75 million, valuing the company at approximately $1 billion.

Market Position and Competitive Landscape

Braze operates in the customer engagement sector, facing competition from companies like Twilio, Airship, and Iterable. The estimated market size for customer engagement platforms is projected to reach $17 billion by 2026.

Future Growth Projections

Analysts project that Braze's revenue will grow at a compound annual growth rate (CAGR) of around 30% over the next five years, driven by increasing demand for personalized customer engagement solutions.